FITB still stuck within tight trading range
Fifth Third Bancorp (FITB) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
FITB finished the week 9.24% higher at 17.61 after edging higher $0.16 (0.92%) today, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (FITB as at May 22, 2020):
Friday's trading range has been $0.56 (3.17%), that's far below the last trading month's daily average range of $0.86. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for FITB. Prices continued to consolidate within a tight trading range between 16.88 and 18.07 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
The stock managed to close back above the 20-day moving average at 17.48. After having been unable to move lower than 17.21 in the prior session, the share found buyers again around the same price level today at 17.22. The last time this happened on Tuesday, FITB gained 3.93% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the nearby swing high at 17.97 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 17.21 where further sell stops might get activated. As prices are trading close to May's high at 18.40, upside momentum could speed up should Fifth Third mark new highs for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Fifth Third. Out of 544 times, FITB closed higher 53.68% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 54.23% with an average market move of 0.41%.